Needless to say, our ruling class hasn`t
much paid attention to me. Republicans didn`t want to hear
about Bush messing upagain.
Democrats
didn`t want to think about the role"diversity"
played in the disaster.

The causal connection, though, is so
obvious that the establishment press is starting to echo my
analysis.

"And if Stockton [CA]today is the
foreclosure capital of the nation—as several surveys show it
to be—it also showcases a little-known upside of the
`subprime crisis`: the elevation nationwide of hundreds of
thousands of
African Americans into homeownership."

Vick goes on to quote a black activist:

"For every $1 of net worth in a household headed by a white person, a
household headed by a minority has 13 cents. Earlier this
decade it was 6 cents … It is all because of homeownership
that we`ve at least moved up to 13 cents."

"Yet even by WaMu`s relaxed standards, one mortgage
four years ago raised eyebrows. The borrower was claiming a
six-figure income and an unusual profession:
mariachi singer. Mr. Parsons could not verify the
singer`s income, so he had him photographed in front of his
home dressed in his mariachi outfit. The photo went into a
WaMu file. Approved. …

"On one loan application in 2005, a borrower
identified himself as agardenerand listed his monthly income at $12,000, Ms. Zaback
recalled. She
could not verify his business license, so she took the
file to her boss, Mr. Parsons. He used the mariachi singer
as inspiration: a photo of the borrower`s truck emblazoned
with the name of his
landscaping business went into the file. Approved."

California`sstrength was its diversity, right? So,of course, Californians could pay off all those half million dollar
with
zero down payment mortgages. They`rediverse!

But in fact, as we`ve since seen, there
is no “Diversity
Dividend”. The law of financial gravity wasn`t suspended
in California.

The real—and quite
frightening—question: is there a"Diversity Deduction"?

There`s no doubt that, say, Mexicans tend
to be more economically productive in Americathan in
Mexico, due to the superiority of American institutions
and American managers. But how much more productive?

The conventional wisdom in
America
is that the simple act of immigration makes immigrants
equally, if not more,
productive, than the average American. When you point out
that there`s no statistical evidence for this widespread
belief, then you are told that their children will no doubt
rise up to complete equality. When you point out that Latino
sociologists have
studied this question out to the
fourth and fifth generations after immigration and
concluded that convergence just doesn`t eventuate—well,
typically the conversation ends.

Hispanics and blacks tend to average
somewhere around two-thirds of the income of non-Hispanic
whites. That suggests that the increase in minority share of
the population over the last 37 years lowered the national
income by about five percent, compared to what it would have
been if the increase had been in proportion to the
U.S.
racial balance in 1970.

However, the disparity in net worth
between whites and non-Asian minorities (NAMs) is much
greater than the income gap, running about an
order of magnitude.

This suggests that the per capita
wealth shortfall caused by demographic change is more like
15 percent.

And, it`s only going to get
worse—unless immigration policy is changed.

Now.

With the Immigration Act of 1965, which
unleashed mass immigration again after a forty-year pause,
our ruling class in effect decided that the U.S. would not
evolve into a
Switzerland, but instead into aBrazil.